Florida Senate - 2019 SENATOR AMENDMENT Bill No. CS for CS for SB 1704 Ì377968mÎ377968 LEGISLATIVE ACTION Senate . House . . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— Senator Gruters moved the following: 1 Senate Amendment (with title amendment) 2 3 Delete line 1240 4 and insert: 5 Section 40. (1) The Legislature finds that: 6 (a) Blockchain technology and distributed ledger technology 7 allow the secure recording of transactions through cryptographic 8 algorithms and distributed record sharing, and such technology 9 has reached a point where the opportunities for efficiency, cost 10 savings, and cybersecurity deserve study. 11 (b) Blockchain technology is a promising way to facilitate 12 more efficient government service delivery models and economies 13 of scale, including facilitating safe paperless transactions and 14 recordkeeping that are nearly impervious to cyberattacks and 15 data destruction. 16 (c) Blockchain technology can reduce the prevalence of 17 disparate government computer systems, databases, and custom 18 built software interfaces; reduce costs associated with 19 maintenance and implementation; streamline information sharing; 20 and allow more areas of the state to electronically participate 21 in government services. 22 (d) Nations, other states, and municipalities across the 23 world are studying and implementing governmental reforms that 24 bolster trust and reduce bureaucracy through verifiable open 25 source blockchain technology in a variety of areas, including, 26 but not limited to, medical and health records, land records, 27 banking, tax and fee payments, smart contracts, professional 28 accrediting, and property auctions. 29 (e) It is in the public interest to establish a Florida 30 Blockchain Task Force comprised of government and industry 31 representatives to study the ways in which state, county, and 32 municipal governments can benefit from a transition to a 33 blockchain-based system for recordkeeping, security, and service 34 delivery and to develop and submit recommendations to the 35 Governor and the Legislature concerning the potential for 36 implementation of blockchain-based systems that promote 37 government efficiencies, better services for citizens, economic 38 development, and safer cyber-secure interaction between 39 government and the public. 40 (2) The Florida Blockchain Task Force, a task force as 41 defined in s. 20.03, Florida Statutes, is established within the 42 Department of Financial Services to explore and develop a master 43 plan for fostering the expansion of the blockchain industry in 44 the state, to recommend policies and state investments to help 45 make this state a leader in blockchain technology, and to issue 46 a report to the Governor and the Legislature. The task force 47 shall study if and how state, county, and municipal governments 48 can benefit from a transition to a blockchain-based system for 49 recordkeeping, data security, financial transactions, and 50 service delivery and identify ways to improve government 51 interaction with businesses and the public. 52 (a) The master plan shall: 53 1. Identify the economic growth and development 54 opportunities presented by blockchain technology. 55 2. Assess the existing blockchain industry in the state. 56 3. Identify innovative and successful blockchain 57 applications currently used by industry and other governments to 58 determine viability for state applications. 59 4. Review workforce needs and academic programs required to 60 build blockchain technology expertise across all relevant 61 industries. 62 5. Make recommendations to the Governor and the Legislature 63 that will promote innovation and economic growth by reducing 64 barriers to and expediting the expansion of the state’s 65 blockchain industry. 66 (b) The task force shall consist of 13 members. Membership 67 shall be as follows: 68 1. Three agency heads or executive directors of cabinet 69 agencies, or their designees, appointed by the Governor. 70 2. Four members of the public or private sector with 71 knowledge and experience in blockchain technology, appointed by 72 the Governor. 73 3. Three members from the public or private sector with 74 knowledge and experience in blockchain technology, appointed by 75 the Chief Financial Officer. 76 4. One member from the private sector with knowledge and 77 experience in blockchain technology, appointed by the President 78 of the Senate. 79 5. One member from the private sector with knowledge and 80 experience in blockchain technology, appointed by the Speaker of 81 the House of Representatives. 82 6. One certified public accountant licensed pursuant to 83 chapter 473 with knowledge and experience in blockchain 84 technology, appointed by the Governor. 85 86 Members of the task force shall reflect the ethnic diversity of 87 the state. 88 (c) Within 90 days after the effective date of this act, a 89 majority of the members of the task force must be appointed and 90 the task force shall hold its first meeting. The task force 91 shall elect one of its members to serve as chair. Members of the 92 task force shall serve for the duration of the existence of the 93 task force. Any vacancy that occurs shall be filled in the same 94 manner as the original appointment. Task force members shall 95 serve without compensation, and are not entitled to 96 reimbursement for per diem or travel expenses. 97 (d) The task force shall study blockchain technology, 98 including, but not limited to, the following: 99 1. Opportunities and risks associated with using blockchain 100 and distributed ledger technology for state and local 101 governments. 102 2. Different types of blockchains, both public and private, 103 and different consensus algorithms. 104 3. Projects and cases currently under development in other 105 states and local governments, and how these cases could be 106 applied in this state. 107 4. Ways the Legislature can modify general law to support 108 secure paperless recordkeeping, increase cybersecurity, improve 109 interactions with citizens, and encourage blockchain innovation 110 for businesses in the state. 111 5. Identifying potential economic incentives for companies 112 investing in blockchain technologies in collaboration with the 113 state. 114 6. Recommending projects for potential blockchain 115 solutions, including, but not limited to, use cases for state 116 agencies that would improve services for citizens or businesses. 117 7. Identifying the technical skills necessary to develop 118 blockchain technology and ensuring that instruction in such 119 skills is available at secondary and postsecondary educational 120 institutions in this state. 121 (3) The task force shall submit a report to the Governor, 122 the President of the Senate, and the Speaker of the House of 123 Representatives and present its findings to the appropriate 124 legislative committees in each house of the Legislature within 125 180 days after the initial meeting of the task force. The report 126 must include: 127 (a) A general description of the costs and benefits of 128 state and local government agencies using blockchain technology. 129 (b) Recommendations concerning the feasibility of 130 implementing blockchain technology in the state and the best 131 approach to finance the cost of implementation. 132 (c) Recommendations for specific implementations to be 133 developed by relevant state agencies. 134 (d) Any draft legislation the task force deems appropriate 135 to implement such blockchain technologies. 136 (e) Identification of one pilot project that may be 137 implemented in the state. 138 (f) Any other information deemed relevant by the task 139 force. 140 (4) The task force is entitled to the assistance and 141 services of any state agency, board, bureau, or commission as 142 necessary and available for the purposes of this section. 143 (5) The Department of Financial Services shall provide 144 support staff for the task force and any relevant studies, data, 145 and materials in its possession to assist the task force in the 146 performance of its duties. 147 (6) The task force shall terminate upon submission of the 148 report and the presentation of findings. 149 (7) This section shall take effect upon this act becoming a 150 law. 151 Section 41. Except as otherwise expressly provided in this 152 act and except for this section, which shall take effect upon 153 this act becoming a law, this act shall take effect July 1, 154 2019. 155 156 ================= T I T L E A M E N D M E N T ================ 157 And the title is amended as follows: 158 Delete line 156 159 and insert: 160 rules; providing legislative findings; establishing 161 the Florida Blockchain Task Force within the 162 department; requiring the task force to develop a 163 specified master plan; specifying the composition of 164 the task force; specifying duties and procedures of 165 the task force; providing that task force members 166 shall serve without compensation but are entitled to 167 certain reimbursement; requiring the task force to 168 submit a specified report to the Governor and the 169 Legislature and to make presentations; providing that 170 the task force is entitled to assistance and services 171 of state governmental entities; requiring the 172 department to provide support staff and other 173 assistance to the task force; providing for 174 termination of the task force; providing effective 175 dates.